Professional social network LinkedIn has priced its IPO at $45 per share, according to a release issued on the company’s site. This is at the high end of the range, which was estimated at $42 to $45 per share yesterday. This puts the company’s valuation at $4.5 billion.
As we wrote yesterday, the company originally stated the price per share range as $32 and $35 but increased this by 30 percent to $42 to $45 per share yesterday. The company is offering a total of 7,840,000 shares and is looking to raise as much as $406 million in the offering. In addition, LinkedIn Corporation has granted the underwriters a 30-day option to purchase up to an additional 1,176,000 shares to cover over-allotments, if any.
The professional social network is set to begin trading on the New York Stock Exchange tomorrow morning, under the symbol LNKD.
It’s certainly a strong pricing and valuation for the company, which only posted $2.08 million in net income for the first quarter of the year. Hopefully, LinkedIn doesn’t face the same fate as Chinese social networking giant RenRen, which priced its IPO at $14 per share and saw the value drop after trading began. We’ll report back on the Street’s response tomorrow.
With over 100 million users representing over 200 countries around the world, LinkedIn is a fast-growing professional networking site that allows members to create business contacts, search for jobs, and find potential clients. Individuals have the ability to create their own professional profile that can be viewed by others in their network, and also view the profiles of their own contacts. Competitors to LinkedIn include sites such as XING, Doostang and Ecademy. Of note, LinkedIn won...